August 9th, 2025
Salceda Research is pushing for the expansion of the Rice Farmer Financial Assistance (RFFA) program to include all rice farmers, regardless of farm size, as a matter of national productivity and food security, and supports Rep. Raymond Adrian Salceda, Chair of the House Special Committee on Food Security, in his call for this reform.
At present, the RFFA under Republic Act No. 12078 limits direct financial assistance to rice farmers tilling up to two hectares. While this covers a large majority of the sector, it excludes a significant segment of farmers who are critical to national rice output, namely those planting more than two hectares.
Under this proposal, farmers planting above two hectares would receive ₱5,000 each from the ₱2 billion in excess rice tariff revenues available under the 2025 General Appropriations Act. Farmers up to two hectares, who have already received ₱5,000 from the first tranche under the existing RFFA, would receive a second tranche of ₱5,000 from the same fund.
Why Inclusion Matters for Productivity
Rice farming in the Philippines is characterized by a large number of smallholders but a disproportionate share of total output comes from larger operations. Based on PSA’s 2022 farm size distribution, Salceda Research estimates that there are about 281,400 rice farmers planting more than two hectares out of a total of 2.4 million rice farmers. These farmers, while fewer in number, tend to have higher per-farm yields simply because they operate on a larger scale.
If the national goal is to raise total rice output, boosting productivity per hectare is important, but so is ensuring that all hectares under cultivation are adequately supported with the inputs needed for maximum yields. Providing a second tranche to small farmholders ensures they can afford optimal input use, while including large farm operators ensures that the country’s most extensive planted areas also receive sufficient production support.
The Fiscal Space is Available
In 2024, rice tariff collections reached ₱34 billion. Of this amount, ₱30 billion was automatically appropriated to the Rice Competitiveness Enhancement Fund under RA 12078. Another ₱2 billion went to the Department of Agriculture buffer fund. This leaves ₱2 billion in excess rice tariff revenues that, under the 2025 General Appropriations Act’s Special Provision No. 9, can be used for programs to support the rice industry subject to guidelines jointly issued by the Department of Agriculture and the Department of Finance.
Allocating this ₱2 billion to all rice farmers ensures fairness while maximizing impact. Both larger and smaller farms will have the means to boost their yields in time for the November dry season planting peak.
From Financial Aid to Productivity Gains
If ₱5,000 per farmer were invested in fertilizer alone, the productivity impact would be substantial. At a urea price of about ₱1,200 per 50 kilogram bag, ₱5,000 buys roughly 4.17 bags or 208 kilograms of urea, which contains about 96 kilograms of nitrogen.
Under Philippine paddy conditions, each kilogram of nitrogen can produce about 12 kilograms of additional palay under farmer practice, with a reasonable range of 8 to 16 kilograms for sensitivity.
Per farmer impact:
• Central: 1,152 kilograms of additional palay
• Low: 768 kilograms
• High: 1,536 kilograms
Impact for farmers planting above two hectares (281,400 farmers):
• Central: 324,493 metric tons of palay
• Low: 216,328 metric tons
• High: 432,657 metric tons
Impact for farmers up to two hectares receiving a second tranche (2.12 million farmers):
• Central: 2,440,320 metric tons of palay
• Low: 1,626,880 metric tons
• High: 3,253,760 metric tons
Combined impact:
• Central: 2,764,813 metric tons of palay
• Low: 1,843,208 metric tons
• High: 3,686,417 metric tons
At a milling recovery rate of 62 percent, the central estimate equates to about 1.71 million metric tons of rice, which is more than 40 percent of the Philippines’ current annual rice imports of around 3.9–4.0 million metric tons.
At a farmgate price of ₱20 per kilogram, this central estimate represents ₱55.3 billion in additional gross value from a ₱12 billion combined program — a gross return of 4.6 times the investment.
Putting the Gains in Perspective
In recent years, the Philippines has imported between 3.5 and 4.0 million metric tons of milled rice annually to supplement domestic production. The gains from this expanded and universal program could offset a large share of these imports in just one season, reducing vulnerability to global price spikes and supply disruptions.
Timing for Maximum Impact
Dry season planting peaks in November, when conditions favor higher yields. Delivering this financial aid before the peak ensures that farmers can purchase inputs on time, translating support directly into production gains. Larger farms, with more hectares to plant, can deploy additional inputs at scale, while small farms, receiving a second tranche, can further optimize their input use.
Equity and Efficiency Together
From a productivity perspective, financial aid should follow the land and the crop, not just the farm size. All hectares planted to rice contribute to national food security, and any hectare that is under-fertilized or under-equipped reduces total output potential.
By making the RFFA universal through a Department of Agriculture and Department of Finance–administered program funded by excess rice tariff revenues, government can address an existing equity gap, fully utilize available fiscal space, and directly boost national production. The result will be more rice per hectare, more rice in total, a measurable reduction in import dependency, and a stronger foundation for long-term food security.